Carlo Gavazzi Holding AGCHIX:GAVZ -0.70%71 Operating Margin % is 1.87% as of Sep. 2025, which is 83% below its 10-year median of 11.31. GuruFocus rates CHIX:GAVZ with a GF Score™ of 71/100 and a GF Value™ of CHF219.96 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Carlo Gavazzi Holding AG ranks worse than 66.1% on this metric.
Carlo Gavazzi Holding AG operating margin has been in a 5-year decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Carlo Gavazzi Holding AG's Operating Margin % or its related term are showing as below:
CHIX:GAVz'
s Operating Margin % Range Over the Past 10 Years
Min: 3.28 Med: 11.31 Max: 18.71
Current: 3.28
CHIX:GAVz's Operating Margin % is ranked worse than 66.1% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs CHIX:GAVz: 3.28
Carlo Gavazzi Holding AG (CHIX:GAVz) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Carlo Gavazzi Holding AG Operating Margin % Related Terms
Carlo Gavazzi Holding AG Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:GAVZ vs VRT, BE, NVT: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Carlo Gavazzi Holding AG's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carlo Gavazzi Holding AG Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Carlo Gavazzi Holding AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Carlo Gavazzi Holding AG's Operating Margin % falls into.
Carlo Gavazzi Holding AG Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Carlo Gavazzi Holding AG's Operating Margin % for the fiscal year that ended in Mar. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Carlo Gavazzi Holding AG (CHIX:GAVZ) has a Operating Margin % of 1.87% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Carlo Gavazzi Holding AG and its competitors. This is 83% below median its historical median of 11.31. Over the past decade, Carlo Gavazzi Holding AG's Operating Margin % has ranged from 3.28 to 18.71. According to the industry distribution chart, Carlo Gavazzi Holding AG ranks #2008 out of 3038 companies in the Industrial Products industry, placing it in the top 66.1%.
Is Carlo Gavazzi Holding AG's Operating Margin % too high?
Carlo Gavazzi Holding AG's current Operating Margin % of 1.87% is 83% below median its 10-year median of 11.31. Over the past 10 years, this metric has ranged from a low of 3.28 to a high of 18.71. The Industrial Products industry median Operating Margin % is 6.53. Carlo Gavazzi Holding AG's value of 1.87% is 71.4% below this industry median. Based on the distribution chart, Carlo Gavazzi Holding AG ranks #2008 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Carlo Gavazzi Holding AG has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carlo Gavazzi Holding AG's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Carlo Gavazzi Holding AG ranks #2008 out of 3038 companies for Operating Margin %. This places Carlo Gavazzi Holding AG in the lower half of its industry. The industry median Operating Margin % is 6.53. Carlo Gavazzi Holding AG's value of 1.87% is 71.4% below this benchmark. Historically, Carlo Gavazzi Holding AG's own Operating Margin % has ranged from 3.28 to 18.71 over the past decade. While the company's 10-year median is 11.31 vs. the industry median of 6.53, Carlo Gavazzi Holding AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carlo Gavazzi Holding AG's current Operating Margin % of 1.87% is 71.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Carlo Gavazzi Holding AG and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carlo Gavazzi Holding AG's current Operating Margin % is 1.87%, which is 83% below median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carlo Gavazzi Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Carlo Gavazzi Holding AG (CHIX:GAVZ) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF219.96, compared to a current price of CHF141.00 — trading 35.9% below its estimated fair value. The current Operating Margin % is 1.87%, which is 83% below median its 10-year median of 11.31 and 71.4% below the Industrial Products industry median of 6.53. Carlo Gavazzi Holding AG's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Carlo Gavazzi Holding AG (CHIX:GAVZ), the current Operating Margin % is 1.87% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carlo Gavazzi Holding AG (CHIX:GAVZ) Overvalued in 2026?
Based on GuruFocus' analysis, Carlo Gavazzi Holding AG stock appears to be undervalued.
The current stock price of CHF141.00 is trading 35.9% below its estimated GF Value™ of CHF219.96.
GuruFocus considers Carlo Gavazzi Holding AG to be Significantly Undervalued.
Key valuation signals for CHIX:GAVZ:
Operating Margin %: 1.87% (83% below median its 10-year median of 11.31)
GF Value™: CHF219.96 vs. price of CHF141.00 (35.9% below fair value)
Industry Position: 71.4% below the Industrial Products median (#2008 of 3038)
No single metric tells the full story. See the CHIX:GAVZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carlo Gavazzi Holding AG is engaged in the designing, manufacturing, and marketing of electronic control components for industrial and building automation markets. The product portfolio of the company comprises sensors, monitoring relays, timers, energy management systems, solid-state relays, safety devices, Fieldbus systems, and others. Its products are marketed through a network of sales companies and independent national distributors. It has operational footprints across Switzerland, Italy, other Europe, the Middle East and Africa, the United States of America, other North America, and Asia.
71GF Score
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